The Lacrimose Mountain Tanager is distributed in the Andes from western Venezuela to southern Peru. See the distribution map at Natureserve. It is found in upper montane forest and Polylepsis woodland mostly between 2,200 and 3,300 metres.

The main distinguishing features are the yellow "tear drop" below the eye and the larger yellow spot behind the ear. The underparts are ochre-yellow and this varies in intensity between the sub-species.